Gold slips after volatile trade, ETF hits record high

Gold fell on Friday as speculators paused after pushing prices towards $US1,250 in the previous session, but a rise in ETF holdings to a record high indicated persistent worries over the global economy.

Spot gold fell 85 US cents to $US1,243.20 an ounce after gaining nearly 1 per cent on Thursday as US stocks tumbled. Gold struck a record high above $US1,264 on Monday.

US gold futures for August delivery fell $US1.60 an ounce to $US1,244.3 an ounce. It had settled around $US11 higher as lingering European credit contagion fears pressured equity markets.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose to a record high at 1,316.177 tonnes as of June 24 from the previous high of 1,313.135 tonnes set on June 22.